Jim Cramer Says Palantir CEO Alex Karp "Knows What He's Doing"

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer recently shed light on. A caller asked for Cramer’s opinion on the company, and he replied:

“Alright, I’m a buyer of Palantir. I know it’s come off, but it’s a wild trader. This is Alex Karp. He’s not a close friend of mine, but I think he knows what he’s doing.”

Palantir Technologies Inc. (NASDAQ:PLTR) develops data analytics and AI software platforms, including Gotham, Foundry, Apollo, and Palantir Artificial Intelligence Platform, that help organizations integrate, analyze, and act on complex data. Cramer discussed the company during the November 10 episode and said:

“Palantir’s harder. Alex Karp seems like a renegade, but he really isn’t. He’s constantly trying to explain why his company’s worth what it is, and he never stops crushing the expectations. I believe in Karp’s leadership because you know what? I’ve been around… My hat’s off to Palantir. I wouldn’t short that thing even after this run… When it was at $50, I said, it would go to $100. When it was at $100, I said it would go to $150, and when it was $150, I said it was going to go to $200. And now I think it’s going to $250 after this pit stop, 178 up to 193.

Hedge fund managers I meet almost all want to tell me, you know what, you’re dead wrong, Cramer. I don’t feel very wrong, especially after talking to multiple clients who actually swear by Palantir… Now I know that Palantir’s richly valued at almost 300 times earnings. As Karp says, and I quote, ‘This ascent has confounded many financial analysts and the chattering class,’ he goes on to say, ‘whose frame of reference did not quite anticipate a company of this size and scale growing at such a ferocious and unrelenting rate.’

… In the end, he points out, ‘Palantir has made it possible for retail investors to achieve the rates of return previously limited to the most successful venture capitalists in Palo Alto.’ To which I say, amen. What do you want me to do here? Palantir and NVIDIA are two of the biggest winners I’ve ever seen, and individual investors have indeed made fortunes in both of them, while money managers sat on the sidelines for the most part or shorted them.”

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Disclosure: None. This article is originally published at Insider Monkey.